In''t Veld, Jan; Kollmann, Robert; Ratto, Marco; … - C.E.P.R. Discussion Papers - 2012
This paper studies the effectiveness of Euro Area (EA) fiscal policy, during the recent financial crisis, using an … estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks … in the public debt/GDP ratio since the onset of the crisis. …